Defense & Military
IAI Completes $50M Kfir C12 Upgrade for Sri Lanka Air Force
IAI and the Sri Lanka Air Force completed a $50M modernization of five Kfir fighters to C12 standard in June 2026.

Israel Aerospace Industries (IAI) and the Sri Lanka Air Force (SLAF) have completed a $50 million modernization program for five Kfir fighter aircraft, culminating in a successful test flight at SLAF Base Katunayake on June 11, 2026.
The upgrade brings the aging fleet to the Kfir C12 standard, integrating advanced avionics and a modern glass cockpit to extend the operational life of a platform originally developed 50 years ago. IAI officially announced the program’s completion in a press release on June 14, 2026.
Fleet overhaul and technical upgrades
Signed in June 2021, the $50 million agreement covered the comprehensive overhaul of four Kfir C2 and C7 variants, along with one TC2 trainer aircraft. The SLAF’s No. 10 Fighter Squadron, known as the “Lion Cubs,” has operated the Kfir since 1996. The fleet saw heavy utilization during the Sri Lankan civil war, which concluded in 2009. This extensive operational history led to a requirement for structural refurbishments and system replacements to address obsolete components.
Executed jointly by IAI and SLAF technical personnel, the modernization replaces legacy systems with a new mission computer, an updated autopilot, and advanced navigation and communication suites. The transition to the Kfir C12 standard also enhances the aircraft’s precision weapon deployment capabilities, transforming the legacy jets into more capable multirole combat platforms.
Extending the lifecycle of legacy platforms
The successful test flight on June 11, 2026, marked the operational return of the upgraded fighters. IAI executives highlighted the engineering achievement of keeping a half-century-old design relevant in modern combat environments.
“The Kfir represents a significant chapter in Israel’s aerospace industry and reflects the technological and engineering capabilities that have characterized IAI for decades,” said Boaz Levy, Chairman of IAI. “The successful modernization of the Sri Lanka Air Force fleet demonstrates how advanced technologies can be integrated into proven platforms to address evolving operational requirements and modern battlefield challenges.”
“Seeing the Kfir continue to fly operationally for more than 50 years after its development is a testament to engineering excellence and to IAI’s long-standing ability to modernize and extend the life of advanced combat aircraft,” added Moshe Levy, CEO of IAI.
AirPro News analysis
We view the SLAF Kfir modernization as a prime example of cost-effective fleet management for nations operating legacy combat aircraft. By investing $50 million to upgrade five existing airframes, Sri Lanka avoids the prohibitive capital expenditure required to procure new multirole fighters. This program also reinforces IAI’s position in the global military MRO market, demonstrating the company’s capability to integrate modern avionics into older airframes. As defense budgets tighten globally, we expect to see continued demand for similar life-extension programs that maximize the utility of proven platforms.
Sources: Israel Aerospace Industries
Photo Credit: Israel Aerospace Industries
Defense & Military
Vertex Aerospace Wins $500M USAF C-12 Logistics Contract
Vertex Aerospace secures a $500M IDIQ contract for global C-12 fleet logistics support across 23 locations through 2031.

Vertex Aerospace LLC has secured a firm-fixed-price, indefinite-delivery/indefinite-quantity contract with a ceiling of $500,000,000 to provide global contractor logistic support for the United States Air Force C-12 aircraft fleet.
Awarded on June 26, 2026, by the Air Force Life Cycle Management Center at Tinker Air Force Base (TIK), the agreement ensures operational readiness for the military variant of the Beechcraft King Air. According to the Department of Defense contract announcement, the C-12 fleet provides time-sensitive movement of personnel, cargo, and medical evacuation services.
Mission and command support
The logistics support contract covers a broad operational mandate. Beyond standard transport and medical evacuation, Vertex Aerospace will provide test support for several key defense entities. These include the Air Force Materiel Command (AFMC), the Defense Intelligence Agency (DIA), the Defense Security Cooperation Agency (DSCA), and Pacific Air Forces (PACAF).
The acquisition was conducted as a competitive process, with the Air Force receiving three offers. The contracts also involves Foreign Military Sales, reflecting the international footprint of C-12 operations and allied support requirements.
Global footprint and funding
Work under the contract will be distributed across 23 locations worldwide, supporting the highly dispersed nature of the C-12 fleet. Domestic work sites include Joint Base Elmendorf-Richardson in Alaska, Edwards Air Force Base in California, Joint Base Andrews in Maryland, Holloman Air Force Base in New Mexico, and Vertex Aerospace facilities in Madison, Mississippi.
International support locations span South America, Africa, Europe, and Asia-Pacific. Designated sites include Buenos Aires, Argentina; Gaborone, Botswana; Brasilia, Brazil; Bogota, Colombia; Cairo, Egypt; Accra, Ghana; Tegucigalpa, Honduras; Budapest, Hungary; Yokota Air Base, Japan; Nairobi, Kenya; Rabat, Morocco; Manila, Philippines; Riyadh, Saudi Arabia; Bangkok, Thailand; Ankara, Turkey; and Oslo, Norway.
Initial funding obligated at the time of the award includes $237,125 in fiscal 2026 operation and maintenance funds, $7,250 in research, development, test, and evaluation funds, and $5,659 in Foreign Military Sales funds. The Department of Defense expects all work to be completed by June 30, 2031.
AirPro News analysis
The C-12 Huron serves as a critical utility workhorse for the United States military-aircraft and allied nations. Because these twin-engine turboprops operate in small detachments across a vast geographic area rather than being concentrated at a few major hubs, maintaining fleet readiness requires a highly distributed logistics network. We view this $500,000,000 ceiling contract as a reflection of the logistical complexity involved in supporting a globally dispersed fleet. By consolidating support under a single indefinite-delivery/indefinite-quantity vehicle, the Air Force Life Cycle Management Center ensures consistent maintenance standards and parts availability from domestic test centers to remote international support locations.
Sources: U.S. Department of Defense
Photo Credit: Yokota Air Base – Air Force
Defense & Military
Airbus and Alta Ares Partner on AI Counter-Drone Integration
Airbus Defence and Space and Alta Ares signed an MOU to integrate AI-guided interceptors into Airbus air defense command systems.

Airbus Defence and Space and European defense technology company Alta Ares signed a memorandum of understanding on June 11, 2026, to integrate artificial intelligence-guided counter-drone interceptors into Airbus air defense command systems.
Announced during the ILA Berlin Air Show, the partnership aims to create a unified sensor-to-shooter chain capable of neutralizing mass-deployed, one-way attack drones. According to a press release issued by Airbus, the agreement will link Alta Ares interceptor hardware and targeting software directly into existing Airbus battle management networks.
Integration of AI and interceptor hardware
The technical integration focuses on connecting Alta Ares systems with Airbus command software. Alta Ares will integrate its Pixel Lock artificial intelligence platform, along with its Black Bird medium-range and X-Lock short-range interceptors, into the Airbus Fortion Integrated Battle Management Software (IBMS) and the Fortion Surface-to-Air Missile Operation Centre (SAMOC).
Alta Ares Co-Founder and Chief Executive Officer Hadrien Canter stated that modern air defense requires both software and hardware operating simultaneously at scale.
“Integrating Pixel Lock and our interceptors into Fortion IBMS means operators get a single, coherent sensor to shooter chain from detection to neutralisation. That’s what theatre commanders are actually asking for,” Canter said.
François Lombard, Head of Connected Intelligence at Airbus Defence and Space, noted that defending against suicide drones is an urgent priority in current asymmetric conflict environments. He emphasized the need for cost-efficient solutions that fit within the broader air defense ecosystem to protect European airspace and allied forces.
Airbus expands counter-UAV portfolio
The Alta Ares agreement follows a series of rapid expansions in the Airbus counter-Uncrewed Aerial Systems (C-UAS) portfolio through collaborations with specialized defense startups. The prime contractor has utilized the ILA Berlin event to solidify multiple integration partnerships.
On June 10, 2026, Airbus Helicopters signed a cooperation agreement with German drone manufacturer Quantum Systems. That partnership will explore integrating C-UAS interceptors onto military helicopters, beginning with the multi-role H145M platform.
Earlier in the year, on March 30, 2026, Airbus demonstrated its own Bird of Prey interceptor drone. During that test, the autonomous system engaged a target using a Mark I missile developed by Estonian startup Frankenburg Technologies.
Alta Ares scales production
Founded in 2024, Alta Ares specializes in counter-drone systems and on-board artificial intelligence. The company saw its systems first operationally deployed in Ukraine during 2024 and has since expanded to meet military demand for defenses against autonomous drones.
On June 9, 2026, two days prior to the Airbus announcement, Alta Ares secured €50 million in a Series A funding round led by Air Street Capital. The company stated the funding will be used to scale the production of its X-Lock and Black Bird interceptor platforms.
AirPro News analysis
The rapid succession of Airbus partnerships at ILA Berlin highlights a strategic shift for the aerospace manufacturer. Rather than developing bespoke interceptor solutions entirely in-house, Airbus is positioning its Fortion software suite as the central nervous system for European air defense while plugging in specialized hardware from agile startups like Alta Ares, Quantum Systems, and Frankenburg Technologies. We view this modular approach as a direct response to the rapid iteration of drone warfare observed in recent conflicts, where traditional surface-to-air missiles are economically unviable against mass-deployed, low-cost autonomous threats. By securing integration rights with well-funded startups, Airbus ensures its command-and-control architecture remains indispensable to European defense ministries.
Sources: Airbus
Photo Credit: Airbus
Defense & Military
IAI and Berlin Sign MoU for Aerospace Innovation Center
Israel Aerospace Industries and the State of Berlin signed an MoU to establish an aerospace and defense innovation center in Berlin.

Israel Aerospace Industries (IAI) and the State of Berlin signed a strategic Memorandum of Understanding (MoU) on June 11, 2026, to establish a new aerospace and defense innovation center in the German capital.
Finalized during the ILA Berlin Air Show, the agreement aims to support startups in the aerospace, defense, security, and dual-use sectors through structured accelerator programs. According to a press release issued by IAI, the initiative is designed to expand the manufacturer’s industrial footprint in Germany, build local production capacity, and create highly skilled jobs in the Berlin region.
Structuring the innovation ecosystem
The new Berlin facility will be modeled after three existing international accelerator programs operated by IAI: Catalyst in the United States, NeuSPHERE in India, and ASTRA in Israel. By integrating into Berlin’s local technology sector, the center will connect emerging technologies with operational defense requirements and global market opportunities.
“This initiative reflects our long-term relationship and commitment to Germany and our vision of building deep, strategic partnerships that combine innovation, industry and operational expertise,” said Boaz Levy, Chairman of the Board at IAI.
Berlin Governing Mayor Kai Wegner noted that the agreement brings first-class aerospace and defense knowledge to the local ecosystem. Wegner stated that establishing such a center in the capital is critical in light of current global crises, supporting aerospace investment and encouraging ties between established companies and startups.
Deepening German-Israeli defense procurement
The MoU follows a period of significant defense procurement activity between IAI and the German government. IAI serves as the prime contractor for the Arrow-3 missile defense system, which was delivered to Germany in late 2025. The system recently became operational as a cornerstone of the country’s broader missile defense architecture.
Beyond the Arrow-3 system, IAI supplies Heron TP drones to the German Air Force and the BlueWhale autonomous submarine to the German Navy. Both the drone and submarine programs were developed in collaboration with German industrial partners.
AirPro News analysis
We view this innovation center as a logical progression of IAI’s strategy to embed itself within the domestic defense industrial bases of its major export customers. By establishing a physical research and development presence in Berlin, IAI transitions from a foreign supplier to a local stakeholder. For the State of Berlin, securing a major international defense contractor’s accelerator program aligns with regional efforts to pivot the local technology sector toward defense and dual-use applications, a trend accelerating across Europe following recent shifts in continental security postures.
Sources: Israel Aerospace Industries
Photo Credit: Israel Aerospace Industries
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